Participant Funding Program – Aboriginal Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of the Jackpine Mine Expansion and the Pierre River Mine Projects

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels.

A Funding Review Committee (FRC) independent of the environmental assessments (EA) was established for the Jackpine Mine Expansion and the Pierre River Mine projects (the Projects), which are being conducted by means of a Joint Review Panel (the Panel). The Panel is being established through an Agreement between the Canadian Environmental Assessment Agency (the Agency) and the Alberta Energy Resources Conservation Board (ERCB). The FRC's purpose was to assess funding applications received under the PFP – Aboriginal Funding Envelope (AFE) to support Aboriginal groups' participation in the EA processes for the proposed Projects, and to recommend whether funding should be provided, and if so, in what amount.

Under the AFE for the Projects, a total of $633,000 was made available to support Aboriginal participation and related consultation activities in the EA, including:

• Input and participation into the panel review processes;
• Review of available documentation, including the environmental impact assessment (EIA) documents, and any additional information that may be requested by the Panel;
• Preparation for and participation in the hearings, including pre-hearing engagement or consultation activities with the federal government that are linked to the EA

The deadline to submit an application was April 15, 2011. Four applications were received for a total funding request of $2,867,306.

On April 26, 2011, the FRC met to review the applications. The FRC members were Paul Scott, retired Regional Director of the Agency's Pacific and Yukon office, acting as Committee Chairperson; Jan Bloomfield, EA Consultant; and Jeff Gilmour, EA Consultant.

Background

Shell Canada Limited (the proponent) is requesting to amend its Jackpine Mine – Phase 1 (the Project A) approval to access additional mining areas on Oil Sands Leases located adjacent to the Project A. The Project A will add another 100,000 barrels bitumen production per day. This will increase the total bitumen production capacity to 300,000 barrels per day. This expansion will include additional mining areas and associated processing facilities, utilities and infrastructure.

The Project A components which are part of the scope of this assessment include:

• expansion of the Project A area on the eastern part of Lease 13 and extending mining activities to additional northern leases;
• open-pit, truck and shovel mine;
• construction of ore handling, conditioning and bitumen extraction facilities and a high-temperature forth treatment facility at the Project A site;
• construction of a cogeneration plant at the Project A site and adding new or augmenting existing utility systems; and
• constructing a new external tailings disposal area at the southern end of Lease 88 to accommodate the additional volume of tailings produced.

The process facilities would include:

• crushers and conveyors;
• slurry conditioning and ore preparation;
• extraction;
• tailing, handling and treatment;
• froth treatment;
• tailings solvent recovery;
• asphaltene recovery; and
• fish habitat compensation and any required infrastructure.

All related works and activities including all temporary facilities required for the construction and operation of the above-mentioned facilities, namely:

• any access roads, work camps, electrical power supply lines or power supply for camps and worksites (new or modified);
• drinking water supply for camps;
• water supply for the project, including water storage facilities;
• temporary control structures and diversion works;
• treatment of wastewaters and waste management;
• construction worksites and storage areas;
• management of excavation material; and
• handling and storage of petroleum products and hazardous materials.

The Pierre River Mine project (the Project B) proposed by the proponent includes the construction, operation and reclamation of an oil sands surface mine and bitumen extraction facilities in the Fort McMurray area. The proposed mining Project B is to be located approximately 90 kilometres north of Fort McMurray on Oil Sands Leases on the west side of the Athabasca River. The proposed development includes an open pit, truck and shovel mine, ore handling facility, bitumen extraction facilities, tailings processing facilities, support infrastructure, water and tailings management plans, and an integrated reclamation plan, as well as the construction of a bridge across the Athabasca River.

The Project B is designed to produce a total of 31,800 cubic metres per day (200,000 barrels per day) of bitumen.

The Project B components which are part of the scope of this assessment include:

• open pit, truck and shovel mine;
• ore preparation and handling facility;
• bitumen extraction facilities;
• bitumen froth treatment plan;
• bitumen products storage facilities;
• tailings management and processing facilities;
• fish habitat compensation and any required infrastructures; and
• co-generation facility.

All related works and activities including all temporary facilities required for the construction and operation of the above-mentioned facilities, namely:

• permanent and temporary access roads (new or modified);
• construction or modification of any airstrip;
• permanent and temporary work camps;
• all temporary or permanent electrical power supply lines;
• drinking water supply for camps;
• water supply for the Project B, including water storage facilities;
• all temporary or permanent power supply for camps and worksites;
• temporary control structures and diversion works;
• treatment of wastewaters and waste management as well as the infrastructure required for this management;
• any bridges and watercourse crossings (new or modified);
• borrow pits and quarries;
• construction worksites and storage areas;
• management of excavation material; and
• handling and storage of petroleum products and hazardous materials.

Eligibility

Under the PFP - AFE, funding may be provided to Aboriginal groups to support their input to an EA and/or to support their engagement in consultation activities with the federal government. These activities must be linked to the EA of a proposed project through a comprehensive study, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed Projects, and must be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the proposed Projects, such as living or owning property in the Projects area;
• community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• expert information relevant to the anticipated environmental effects of the Projects.

All four applicants were deemed to have met the eligibility criteria.

Funding from other sources that is known to have been made available to or received by Treaty Nations and Aboriginal groups related to the review of a project is considered by the FRC, as are any partnerships between PFP - AFE applicants and other participants in a project assessment. Also, the potential for future participant funding that may be provided through the Alberta ERCB was factored into the FRC's considerations.

Under the PFP - AFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• local collection and/or distribution of information;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the environmental assessment (EA);
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• legal fees;
• purchase of relevant information material, with supporting documentation;
• general media advertising and/or promotion; and
• other detailed expenses.

Rationale for Allocation

In reviewing the applications received and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors, including the following:

• Engagement in consultation activities with the federal government that are linked to the EA of a proposed project through a comprehensive study, mediation or review panel;
• Aboriginal groups who could demonstrate that they had met at least one of the following criteria were eligible for participant funding under the program:
  • have a direct, local interest in the proposed Projects, such as living or owning property in the Projects area;
  • community knowledge or Aboriginal traditional knowledge relevant to the EA; or
  • expert information relevant to the anticipated environmental effects of the Projects.
• The quality, clarity and content of the application, particularly with respect to the relationship between specific project components and the applicant's traditional lands and resources, and the applicant's proposed EA participation work plan;
• Advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review;
• Presence/absence of specific project components within the applicant's traditional lands;
• Potential project impacts on traditional lands and resources, and on the related interests and asserted rights and title of the applicant;
• Awareness that the applicant represents the Aboriginal group for the purpose of this application; and
• Other sources of government funding made available to or received by Aboriginal groups related to the review of the Projects, and established partnerships are examined and considered.
• The limitation of funds available under the PFP - AFE.

Recommendation

The FRC recommends allocating a total of $636,500 to the four applicants as follows:

• $187,000 to the Athabasca Chipewyan First Nation;
• $175,000 to the Mikisew Cree First Nation;
• $ 82,500 to the Métis Nation of Alberta Association Region 1; and
• $192,000 to the Fort McKay First Nation.

The FRC further recommends that any funding be conditional on the provision of input to the Panel on the EA for the Projects in the form of written comments and/or an oral presentation.

The Participant Funding Review Committee for the Jackpine Mine Expansion and the Pierre River Mine Projects
Aboriginal Funding Envelope

________________________________________
Paul Scott, Committee Chairperson, Retired Regional Director of the Agency's Pacific and Yukon Office

________________________________________
Jan Bloomfield, Environmental Assessment Consultant

________________________________________
Jeff Gilmour, Environmental Assessment Consultant

Recommended Participant Funding Allocations for the Jackpine Mine Expansion and the Pierre River Mine Project
Aboriginal Funding Envelope

Applicant	Total allocation amount recommended
Athabasca Chipewyan First Nation	$187,000
Mikisew Cree First Nation	$175,000
The Métis Nation of Alberta Association Region 1	$82,500
Fort McKay First Nation	$192,000
Total	$636,500